Opinion: These stock traders’ charts are signaling the S&P 500’s next move



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The S&P 500 Index

SPX continues to move in fits and starts around the 7,000 level. What’s missing is a robust upside breakout that will clear out the stops and make the shorts run for cover.

That could still happen: SPX on Jan. 28 crossed 7,000 for the first time. But the blue horizonal lines on the chart below show each attempt at new highs followed by yet another pullback. If the bulls can get the upper hand, the advance could reach 7,110 (the +4σ “modified Bollinger band”) or even 7,300. Meanwhile, there is support at 6,800 (last week’s lows) and important support at 6,720 (the December lows).


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